FxWirePro: EUR/GBP consolidates near 2-month trough, investors eye next catalyst
The euro nudged up after falling to a 2-month low last week against the British pound amid expectations that the new British finance minister would unveil a more expansionary budget next month. EUR/GBP is trading 0.2 per…
The euro nudged up after falling to a 2-month low last week against the British pound amid expectations that the new British finance minister would unveil a more expansionary budget next month.
EUR/GBP is trading 0.2 percent up at 0.8317, having hit a low 0.8295 on Thursday, its lowest since December 13.
Investors wait to see the UK expand fiscal spending to help weather the impact of Britain’s departure from the European Union at the end of last month.
Technical indicators are turning bearish: RSI weak at 34, MACD supports downside and Stochs are at oversold levels
Immediate resistance is located at 0.8345 (23.6% retracement of 0.8504 and 0.8295), a break above could take it near 0.8375 (38.2% retracement).
On the downside, support is seen at 0.8275, a break below could drag it till 0.8263.
Recommendation: Good to sell on rallies around 0.8305, with stop loss of 0.8315 and target price of 0.8275.
